Risk sits at the forefront of every investor’s thinking right now. Investors don’t have the luxury of completely eliminating risk. They must take steps to prudently manage it so there are no rude surprises.
No quality long-term decisions will be made when someone is feeling panicked or euphoric. This is where good financial advice and a sober second opinion prove valuable.
It’s no secret interest rates are low. Have ten grand in the bank? If you’re lucky with a ‘high interest’ account, at the end of the year you’ll have made $200. That’s before the tax man and inflation come calling.
It was an unceremonious occurrence. A few minutes into trading on the third of February 2020 the ASX released a list of companies whose securities had been suspended from trading for an unacceptable period of time.
Markets were off their highs. Trump was being Trump. August had been one of those months. Off nearly 5% in a week. Sideways for the next three. A slight upward burst at the end, but the media had been salivating at the prospect of more losses.
One of the most important things for investors is mastering the ability to sit in their seat over the long term. This means not reacting to markets when they don’t go the way they’d hoped and accepting that sometimes there will be bouts of frustration.
